Production
Factors of production
There are four factors of production - land, labour, capital and enterprise.
| Land | The natural resources used to provide a good or service such as water, a plot of land, fields, fish or coal |
| Labour | The workforce used to produce a product or provide a service such as builders, teachers or plumbers |
| Capital | The man-made resources used to produce a product or provide a service such as machinery, tools, money or delivery trucks |
| Enterprise | The idea the owner had to create the business. How the land, labour and capital is used to make a good or provide a service |
| Land |
| The natural resources used to provide a good or service such as water, a plot of land, fields, fish or coal |
| Labour |
| The workforce used to produce a product or provide a service such as builders, teachers or plumbers |
| Capital |
| The man-made resources used to produce a product or provide a service such as machinery, tools, money or delivery trucks |
| Enterprise |
| The idea the owner had to create the business. How the land, labour and capital is used to make a good or provide a service |
Wealth creation
At each stage of the production process, value is added to the product. The total value of a dress is worth more than the raw materials used to produce it. The additional wealth that is added at each stage of the production process is known as wealth creation.